Budgeting Basics for Students

Vocabulary flashcards covering key terms and concepts from the lecture on student budgeting fundamentals.

Budget

A financial plan for a specified period that guides spending toward set goals.

Focus and Direction

The clarity a budget provides by keeping attention on financial objectives.

Efficiency in Budgeting

Using historical data and future trends to allocate resources wisely.

Maslow's Hierarchy of Needs (Budgeting Context)

Prioritizing physiological and safety needs—food, shelter—before other expenses.

Basic Needs

Essential living costs such as food and housing that must be funded first.

Consumer Debt

Money owed from purchasing goods/services that do not increase in value; should be avoided or quickly repaid.

Emergency Fund

Readily accessible savings (≈ $1,000–$1,500) set aside for unexpected expenses.

Targeted Debt Repayment

A strategic plan to eliminate consumer debt efficiently.

Living Within Your Means

Spending less or equal to what you earn, acknowledging limited resources vs. unlimited wants.

Scarcity Principle

Economic concept highlighting limited resources against unlimited desires; underpins budgeting discipline.

Tracking Expenses

Recording every expenditure to reveal spending patterns and inform adjustments.

Goal Setting

Defining clear financial objectives to steer budgeting efforts.

Trial and Error (Budgeting)

Accepting mistakes as part of learning to manage money effectively.

Self-Reflection

Assessing personal needs and desires to build a realistic budget.

Hard Work

Effort that often leads to higher income, supporting budgeting success.

Planning

Deliberate preparation; embodied in the adage 'If I fail to plan, I am planning to fail.'

Historical Data

Past financial information used to forecast and structure a budget.

Continuous Learning

Ongoing research and adaptation to improve financial skills over time.

Short-Term Emergency

Unexpected cost (e.g., car repair) that an emergency fund should cover.

Long-Term Financial Security

Stability achieved by debt freedom, larger savings, and sustained budgeting habits.